March 9, 1998 No. 48

AXWORTHY ANNOUNCES MEASURES

IN RESPONSE TO THE VIOLENCE IN KOSOVO

Foreign Affairs Minister Lloyd Axworthy today announced that due to recent events in Kosovo, and Yugoslav President Milosevic's unwillingness to pursue a peaceful path there, Canada had no choice but to pursue a number of measures with the hope of prompting the Government of the Federal Republic of Yugoslavia (FRY) to take steps to resolve the Kosovo issue peacefully.

These measures include:

to instruct EDC (Export Development Corporation of Canada) to suspend consideration of export credits for the Federal Republic of Yugoslavia until further notice;

to suspend discussions concerning charter landing rights in Canada with Yugoslav Airlines; and

to put on hold discussions on other bilateral agreements until further notice.

"The continuing repression and violence in Kosovo by Serbian security forces intensified the Federal Republic of Yugoslavia's international isolation and damaged its bilateral relations with Canada," said Minister Axworthy.

Canada will continue and enhance a number of measures that are in place with respect to the Federal Republic of Yugoslavia. Included in these measures are Canada's rejection of arms exports to Yugoslavia, if they are likely to exacerbate the conflict in Kosovo or the Balkans region; a closer focus on democratic development and human rights projects in Kosovo through the Canada Fund, currently administered by Canada's Embassy in Belgrade; and Canada's continuing to consider appeals for humanitarian assistance for Kosovo. Canada will also consult with its allies to determine further multilateral measures and

co-ordinate humanitarian assistance activities with other donors and international organizations.

"The responsibility for lifting these measures lays squarely with President Milosevic," said Mr. Axworthy. "Canada will review today's measures and be willing to assist the FRY in integrating into the international community, if President Milosevic takes steps to enter into a dialogue with the Kosovar Albanians over the status of Kosovo."

Mr. Axworthy recalled his meeting with former FRY Foreign Minister Milan Milutinovic, now President of Serbia, in April 1996, when Mr. Axworthy had warned that the pace and scope of Canada's bilateral relations would depend upon the FRY's progress on human rights in general, and on peacefully resolving the Kosovo issue.

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For further information, media representatives may contact:

Debora Brown

Office of the Minister of Foreign Affairs

(613) 995-1851

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca